Released January 10, 2023
Released annually in January, the Swanepoel Power 200 (SP 200) — the first section of the Real Estate Almanac — ranks the most powerful and influential executives in the residential real estate industry.
Now in its 10th year, the SP 200 ranks the nation’s 200 most powerful leaders. To do this, T3 Sixty dedicates hundreds of hours of research into analyzing company performance, personal bios and influence, company organization charts and in clarification calls with industry leaders — from the industry’s largest brokerages and franchise brands to its biggest MLSs and Realtor associations to the leaders of its most significant technologies.
In addition to the main list, the Power 200, which ranks the industry’s 200 most powerful leaders (which includes slightly over 200 leaders as some positions include duos or trios), the SP 200 includes two bonus lists: Watchlist and Outside Influencers. The Watchlist comprises emerging leaders who are doing compelling things in the industry and who T3 thinks may make their way on to the Power 200 list in coming years — leaders to watch. The Outside Influencers include leaders who do not operate directly in the residential real estate brokerage industry, but, by their positions, hold immense power in the industry and who must be recognized in any consideration of industry power.
Released February 2023
Released annually in February, Organized Real Estate — the second section of the Real Estate Almanac — ranks all MLSs, local Realtor associations and state Realtor associations by membership size.
Released March 2023
Released annually in March, Technology Providers (Tech 500) — the third section of the Real Estate Almanac — sorts and compiles products from well-established companies such as: MoxiWorks, W+R Studios, Constellation Real Estate Group, Inside Real Estate, Fidelity National Financial, Adwerx, LionDesk, Buyside, ActivePipe, HomeSpotter, Union Street Media and many more.
Released April 2023
Released annually in April, Corporations — the fourth section of the Real Estate Almanac — ranks the nation’s largest holding companies and franchise brands by annual sales volume, transaction sides and agent count.
Holding Companies
A holding company does not deliver brokerage or franchise services itself but owns a controlling stake in one or more companies that do offer those services. In the industry, the biggest two holding companies are Anywhere Real Estate (NYSE: HOUS) and kwx, the company that owns and operates Keller Williams Realty.
The holding company list can be a little confusing; in some cases, a holding company sometimes owns brokerages and sometimes not. Sometimes a holding company owns a franchise brand, and sometime not. Other times a holding company has the same name, or brand, as the brokerage or franchise it owns or operates.
For example, HomeServices of America owns brokerages under its HomeServices of America-named brokerage division; it also owns brokerages that operate under the Berkshire Hathaway HomeServices brand, which it also owns. RE/MAX is another example. The holding company RE/MAX also operates the RE/MAX franchise. In both examples, the two different entities operate under the same name making it easy for readers to get confused.
Therefore, clarifying the entity ranked is critically important to ensure an accurate reflection of the appropriate part of the company being included, or not. In some cases, different numbers appear attributed to what may appear as the same entity to the untrained eye, but, really, they tie to two different entities: a holding company on one side and a brokerage or franchisor on the other.
Franchise Brands
T3 Sixty uses the term franchise brand refers to specific real estate brands and franchisor to refer to franchise groups that operate multiple real estate brands; for example, Anywhere Brands is a franchisor that runs the franchise brands Coldwell Banker Real Estate, Sotheby’s International Realty, Better Homes and Gardens Real Estate, ERA Real Estate and Corcoran Group. Some franchisors only operate one franchise brand such as Keller Williams Realty and RE/MAX.
Franchising has had an enormous impact on the residential real estate brokerage industry since emerging in the early 1970s. Century 21 Real Estate, ERA Real Estate and RE/MAX hit the scene in 1972 with their new franchising systems and national ambitions, and within a decade had an outsized industry influence. For example, Century 21 went public in 1977 after growing its network to 3,300 franchisees in just six years.
A franchisor is a company that owns trademarks, products, intellectual property and business systems and then licenses them as a package to an organization to operate as a franchisee in a certain predetermined location for agreed upon fees. The franchise agreement between these two parties also outlines branding, co-marketing as well as franchisee obligations. Franchisors, however, are not legally or financially responsible for their franchisees.
Franchisors do not have an ownership stake in the real estate offices under their brand unless the franchisor (or holding company) own the brokerage and sign a franchise agreement. Examples of the latter include Coldwell Banker and Realogy Brokerage Group under the Realogy umbrella and Berkshire Hathaway HomeServices under the HomeServices of America umbrella (these are then generally referred to as company-owned offices).
Franchising in real estate does not fundamentally or automatically alter brokerage operations. Primarily, franchisors provide brokers a brand and an operating system designed to help them grow and improve operations, some technology, referral networks and often some training.
A franchisor derives its primary income from franchisees (brokerages) who pay an ongoing franchise fee. Typically, brokerages pay franchisors a licensing fee as a percentage of their top-line revenue. Traditionally, this fee stands at approximately 6 percent, which then staggers down at predetermined revenue thresholds. Many franchisors also require brokerages to contribute to a national advertising fund.
A franchisee (the party receiving the licensing rights), as most brokerages, usually derives the bulk of its revenue by taking a cut of the commissions its agents receive when they help a consumer buy or sell a house. This is usually a percentage on a sliding scale but is increasingly becoming a fixed fee. Brokerages often have additional agent fees for technology and marketing.
Released May 2023
The annual Mega 1000 — the fifth section of the Real Estate Almanac — ranks the largest residential real estate brokerages by their full-year 2022 stats.
Residential real estate brokerages are an essential element in the industry: they provide the legal mechanism for the buying and selling of homes, support agents with company structure and training and collaborate with local competitors to ensure the real estate market remains as healthy and fluid as possible. Brokerages offer administrative, operational, marketing, technology, legal and branding and training services to real estate agents who hang their license with them. Agents typically interact directly with consumers who usually recognize brokerages as a corporate or umbrella brand on shopfronts, for sale signs, websites, and legal contracts.
A residential real estate brokerage is a company – usually an incorporated firm, a limited liability firm or a sole proprietorship – licensed to sell real estate in the US. As defined in the Real Estate Almanac, a brokerage company’s numbers include subsidiaries in which the company owns a controlling stake of more than 50 percent of the company.
For example, the nation’s third largest brokerage, HomeServices of America, owns and operates approximately two dozen regional or local brands, such as Edina Realty, Long and Foster Real Estate, Houlihan Lawrence and Ebby Halliday Realtors. The annual sales volumes of those brokerages, and others within the HomeServices of America stable, roll up to HomeServices of America because it owns more than 50 percent of each of those brokerages. Anywhere Advisors has a similar situation; it owns numerous regional Coldwell Banker-branded companies as well as some companies under other brands such as Corcoran Group. Some brokerages stand alone or operate under a single entity or brand such as Redfin, Compass and eXp Realty.
Other brokerages affiliate with franchise brands. Brokerages not affiliated with a brand are often referred to as independents. Examples of large franchise brands within the industry include RE/MAX, Keller Williams Realty and Coldwell Banker. Eighty percent of the brokerages in the Mega 1000 are affiliated with a brand and 20 percent operate under their own brand. These non-franchise-affiliated companies have been referred to as “independents.” However, today’s varying structures render the word misleading and often results in incorrect groupings. Many independents also hold membership in a real estate network such as The Realty Alliance or Leading Real Estate Companies of the World.